Employee Compensation and Turnover Essay -- Human Resources Management

Employee Compensation and swage Often, an excessively high turnover say compared to the industry standard is a symptom of problems within the organization (Gomez-Mejia, Balkin & Cardy 1998). Managers mustiness realize that high staff turnover can prove costly, specially to small businesses (Oliver 1998). Strategies have to be crafted that will minimize turnover and the cost associated with it. Although strategies used to retain employees can be expensive, turnover is a alternating(prenominal) problem that usually becomes more expensive in the long go by (Brannick 1998). Costs that organizations face when employees depart include recruitment cost associated with determination replacements, selection costs associated with interviewing, relocating and screening, training costs and separation costs such as severance pay (Gomez-Mejia, Balkin, & Cardy 1998). Managers can reward employees with tangible or intangible compensation (Brannick 1998). Tangible compensation includes sala ry increases, benefits, bonuses, potential for emanation and stock options (Brannick 1998). The good news for managers is that there are also sleazy strategies that can be implemented to make and keep employees happy with their jobs. intangible compensation includes respect, feedback, recognition, the opportunity to be heard and encouragement (Armentr forbidden 1998). All of these room of compensation can be effective if managers take the time to explicate to know their employees and what makes them happy. The human resource function, compensation management is at the cracker bonbon of all of these issues. THE EFFECTS OF TURNOVEREmployee turnover rate is defined as the measure of the rate at which employees leave a firm (Gomez-Mejia, Luis, Balkin & Cardy 1998). Turnover has b... ... (1998). Controlling employee turnover 5 paragraphs. Online. Available WWWhttp//www.auxillium.com/staffing.htm Brannick, Joan (1998). Decreasing the staggering costs of turnover in your organization 14 paragraphs. Online. Available WWWhttp//www.florida-speakers.com/turnover-costs.htm Condodina, Jen, Ermel, Lauren (1997). Compensating packages changing shape. HRFocus, p.S-1. Davis, Barbara (1997). Strategies for managing retention. HRFocus, p.S-3. Gomez-Mejia, Luis, Balkin, David, Cardy, Robert (1998). Managing pitying Resources, New Jersey Prentice Hall. Oliver, Judith (1998). High staff turnover- find out why your staff are leaving. Management Today, p.84. Shaw, Jason, Delery, John, Jenkins, Douglas, Gupta, Nina (1998). An organization-level analysis of voluntary and unwilled turnover. Academy of Management Journal, 41, p.511.